EIOPA Sets Out Supervisory Convergence Plan For 2022

EIOPA Sets Out Supervisory Convergence Plan for 2022 24/02/22, 4:48 PM
EIOPA Sets Out

Supervisory
Convergence Plan for
2022
By Regulatory News
FEBRUARY 09, 2022
ENVIRONMENTAL, SOCIAL, AND GOVERNANCE (ESG), SOLVENCY II
The European Insurance and Occupational

Pensions Authority (EIOPA) set out the
supervisory convergence plan for 2022.
Starting the discussion with the priorities for
2021, this plan outlines the supervisory
convergence priorities for the coming year as
well. This year, EIOPA will continue to focus on
proportionality in supervision; supervisory
assessment of conduct risks; environmental,
social, and governance (ESG) issues; and group
supervision policy. EIOPA will also focus on
supervisory convergence tools for calculation
of technical provisions, conduction of
benchmarking study on internal models,
https://www.moodysanalytics.com/regulatory-news/feb-09-22-eiopa-sets-out-supervisory-convergence-plan-for-2022 Page 1 of 7
implementation of the new framework on

digital operational resilience (DORA), and the
development of a supervisory convergence
tool on cyber underwriting.
The following are the key highlights of the work priorities for
this year:
Risk assessment framework and application of
proportionality. Following a publication of the proposal
amending the Solvency II Directive, EIOPA continues
conducting internal preparatory work to support the
future implementation of the framework, with goal of
issuing operational guidance for the application of the
new framework on proportionality when it will be in force.
Supervisory approach to ESG risks. EIOPA will focus on
conclusion of the work on EIOPA Supervisory Handbook,
addressing the supervision of climate-related risks in
Solvency II Pillar 2. Following the publication of EIOPA’s
Opinion on the supervision of the use of climate changes
risk scenarios in own risk and solvency assessment, or
ORSA, in 2021 and the incorporation in the Solvency II
2020 Review proposal of the requirement for long-term
climate change scenario analysis, EIOPA will publish
application guidance to facilitate implementation by
undertakings (especially SMEs). A pilot exercise to test the
application of the guidance with volunteering
undertakings and national competent authorities will be
conducted by the first half of 2022. Additionally, as part of
the conduct oversight, EIOPA will collect data on ESG
products as part of EIOPA’s Cost and Past Performance
analysis.
Suptech. EIOPA intends to launch the assessment of the
feasibility of the implementation of a suptech solution
that would allow EIOPA and the other national competent
authorities to collect the information of the Packaged

Retail and Insurance-based Investment Products (PRIIPs)
Key Information Document of Insurance-based
investment products products sold in the European Union.
Calculation of technical provisions. EIOPA plans to publish
(new and amended) guidelines on best estimate valuation
and guidelines on contract boundaries during the first half
of the year. EIOPA also plans to finalize the revision of the
technical provisions chapter of EIOPA Supervisory
Handbook during the first half of the year, including also a
section on supervision of negative best estimate.
Assessment of internal model outcomes. During the year,
EIOPA will continue its work with the three comparative
studies on the outcomes of internal models regarding the
modeling of non-life risks, market and credit risks, and the
modeling of diversification benefits.
Information technology security and governance-related
risks, including cyber risk. Following the publication in
September 2020 of European Commission’s proposal for
the Digital Operational Resilience Act (DORA), EIOPA will
continue preparatory work on the implementation of
DORA. Particularly, EIOPA will work on a system for the
exchange between competent authorities of information
regarding cybersecurity and cyber-attacks and monitor
the implementation of the EIOPA guidelines on
information and communications technology security and
governance to identify concrete proportionate
implementation aspects. EIOPA will also contribute to the
establishment of a Digital Operational Resilience
Framework with special focus to the cyber incident
reporting and cyber resilience testing and on the
implementation of proportionality principle.
Digital transformation. EIOPA plans to focus on specific
artificial intelligence use cases in insurance or assessing
the topic of financial inclusion in the digital age. In this
regard, EIOPA will take into account the legislative

developments of the Artificial Intelligence Act and the
implementation of the European Commission’s Digital
Finance Strategy. EIOPA will participate and promote
relevant discussions in the area on the insurance and
pension sector in the European Forum of Innovation
Facilitators. EIOPA will also develop supervisory
convergence tools to support national competent
authorities in the performance of the business model
analysis in the context of the insurance digital market.
Related Links
Press Release
Supervisory Convergence Plan (PDF)
Keywords: Europe, EU, Insurance, Solvency II, Supervisory

Convergence, Suptech, ESG, Cyber Risk, Proportionality,
Internal Models, DORA, Digital Operational Resilience Act,
Operational Resilience, Credit Risk, Market Risk, EIOPA
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EIOPA Sets Out Supervisory Convergence Plan For 2022

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EIOPA Sets Out Supervisory Convergence Plan for 2022 24/02/22, 4:48 PM

EIOPA Sets Out

The European Insurance and Occupational

implementation of the new framework on

authorities to collect the information of the Packaged

regard, EIOPA will take into account the legislative

Keywords: Europe, EU, Insurance, Solvency II, Supervisory

PREVIOUS ARTICLE NEXT ARTICLE

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FSB Outlines Upcoming Work Deliverables,

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FED and OCC Release the 2022 Stress Test

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ESMA to Develop Indicators for Monitoring

FEBRUARY 15, 2022 WEBPAGE REGULATORY NEWS

APRA Updates Validation Rules, Proposes

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ESMA Sets Sustainable Finance Priorities, to

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ESRB Report Assesses Vulnerabilities in

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ECB Updates Capital Requirements for

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ACPR Updates Taxonomic Controls Under

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